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East End Fiscal Cliff May Be the Expiring Estate Tax Law

Nobody in the press is really talking about this.

As quietly as a couple walking their dog along the edge of the ocean late at night, the Estate Tax change will arrive Tuesday, Jan 1.

It will have a huge effect on residents of the East End of Long Island for many reasons. First of all the exemption goes from $5 million to $1 million, basically meaning an estate that was less than $5 million paid zero tax. So most estate planning that was done is now obsolete, so you should call your estate planner, a job I did 10 years ago, but now have nothing to do with, but I felt the need to write this because it is a tax nightmare. This Wall Street Journal graph makes my point best.

Estate Size       Tax Burden for Survivors

$1 million          $0

$2 million          $0

$3 million          $0

$4 million          $0

$5 million          $0

$6 million          $308,000

$7 million          $658,000

$8 million          $1,008,000

$9 million          $1,358,000

$10 million         $1,708,000

 

2013

Estate Size       Tax Burden for Survivors

$1 million          $0

$2 million          $435,000

$3 million          $945,000

$4 million          $1,495,000

$5 million          $2,045,000

$6 million          $2,595,000

$7 million          $3,145,000

$8 million          $3,695,000

$9 million          $4,245,000

$10 million         $4,795,000

(Thanks to estate-planning law firm Mark S. Eghrari & Associates in Smithtown, N.Y., for crunching the numbers.)

So why is no one talking about it because quite frankly many properties on the East End may be valued over $5 million alone. When I spoke with Senator Gillibrand about this she said to me, one-on-one, that she was working in committee to get some sort excursion for farms in a new law, but there is no new law. If you are concerned about this issue perhaps you should contact Congressman Tim Bishop and Senator Chuck Schumer and Senator Kirsten Gillibrand. look at those numbers, ouch!!!!!

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Sufferington Post December 29, 2012 at 05:58 PM
You can't figure out if paying taxes is good or bad can you? You need to slow down big feller. "So most estate planning that was done is now obsolete , so you should can your estate planner, a job I did ten years ago, but now have nothing to do with, but I felt the need to write this because it is a tax nighmare." "to get some sort excursion for farms" It is financial malpractice to give advice like that, your emotion is literally jumping off of the screen here and you need to understand that when you have nothing to offer, it is fine to offer nothing.
Preliator December 30, 2012 at 10:44 AM
The estate tax...more government theft.
JRW December 30, 2012 at 05:58 PM
Does anybody get it? What we settled for in November is not only kicking the can down the street, but voting to put our heads in the sand. High taxation has not worked anywhere in the world where it has been implemented. The estate tax is especially onerous because it is a double tax. That being said, both Republicans and Democrats are to blame. Their attitude has been one of blind refusal to recognize reality. The day is long past for big government being the panacea for what ails our society (if it ever was). Self help and taking responsibility is the answer... it is what this country was founded on and upon which it grew. But expecting everyone else to sacrifice is inanely unrealistic. If we don't fight back, we deserve what we get... taxed into the status of a 3rd-rate banana republic.
Preliator December 30, 2012 at 06:48 PM
You are wasting your time JRW, half these fools think punishing success is good, that those dirty rich people have to pay up. Besides, we have 3rd rate president, why should the country not suck just as bad ass the cesspit he crawled from.
Greg Celi December 30, 2012 at 11:30 PM
Keep killing the golden goose, soon the public sector will be left with little budgets to keep raising themselves cost of living increases, eventually payroll in general. Cutting services and programs alike, eventually Main Street America will be like the other 3rd world nations . My family can hunt and farm.. hope yours can too.
Lady L December 31, 2012 at 02:12 AM
When the government becomes so large, so bloated on their many raises and benefits, it must tax the people at greater rates. Just as in the feudal days of old, when eventually, the people rose up and demanded their right to the fruit of their own labor, and deposed their kings and dictators, we are approaching the same level of frustration to the many levels of taxation, fines, fees and regulations. We do not need a privileged class of politicians, we need true representatives of the people...with term limits and same laws as they impose on us.
Rick Hoyt December 31, 2012 at 03:36 AM
I never required any assistance at anytime from this government, But don't Tax us into Oblivion to support lifestyles for People who scam the system,Corporate Welfare is the larger problem, we're covering the losses of Globalist scum and their Derivative Libor Games.This is the New Reality, the Calvary isn't coming, stay Positive,stop buying and going into debt for Chinese slave labor kitch from Wallyworld ( Wallmart ), Strive to be Self Sufficient and Prioritize, your Health and Family are Foremost.
Jaguar-Guy January 01, 2013 at 10:14 PM
The Death Tax. You pay taxes on that money once, and when you die, the gov't rapes you 2x.
Oldvet January 02, 2013 at 12:27 AM
Thank you JRW. What a novelty, accountability and responsibility. Our government has done nothing more than train a society to hold their hand out without doing anything for it.
Oldvet January 02, 2013 at 12:38 AM
It's not just the government, it's the handouts to those the government provide who expect support rather than be rewarded for work, and I'm not referring to those who suddenly found themselves unemployed and in need of assistance. Taxes - start waking up everyone is going to be hit as long as democrats are in control of the Senate and Whitehouse.
forward thinking January 02, 2013 at 12:54 AM
have the gov't elected and "workers" (free choice ones) pony up 1/2 medical increase their tax rate. there is a message on the back of money its a pyramid (al - la ponzi). to ease our conscience we create social policies to support anyone. It would be far better if locally we “took care” of our own… because of the luck of the sperm or through hard work people who have more than others should not be excessively penalized. I support a flat tax rate – i.e. – 25% over one million , 20% over 500,000 and 15% over 120,000 and 10% for all others… no deductions
T.J. Clemente January 02, 2013 at 05:08 AM
BREAKING NEWS>>Ok the new law passed tonight has this provision about the Estate Tax for 2013 moving forward, FIRST $5 Million exempt (NO TAX) all money over $5 Million taxed at 40 %. It's official.
T.J. Clemente January 02, 2013 at 05:12 AM
UPDATE OF BREAKING NEWS ON THE ESTATE TAX FOR 2013 Under the agreement, U.S. estate tax law will provide a $5.12 million per-person exemption. The deal raises the highest tax rate from 35 to 40 percent but continues the current policy of reunifying the estate and gift taxes. All other current policies related to the estate tax will also remain in place. This permanent not a year to year deal!!!!!
Rick Hoyt January 02, 2013 at 11:53 AM
Joe Biden is doing his victory lap, I Blame "Boner" Just as much, There Are NO Deductions, Except for BIG Business as Usual, Senate passes the Thing in the Middle of The Night, the Feckless "Boner" Shafts Us Again, No one even reads it, same M.O. as The "Hellthcare ill".Where's the Transparency ? The Only winners the Republicrats-Cartel and BIG Business as Usual.The Debt Ceiling will be Increased,QE4, More Fiat $ being printed.Don't Blame me I Voted For Gary Johnson - Libertarian, "it's F*&#In$ Embarrassing" - George Carlin.
BeNice January 02, 2013 at 06:52 PM
It is a high tax but most people I know (and they are all hard working middle class folks) don't have to worry about this tax change. They are too worried about meeting monthly mortgage payments and bills, rising costs from food to gas and dealing with year after year of salary freezes or mininal raises..not enough to keep up. They most likely pay a higher percentage of tax than many of the wealthy. Yes, the higher tax stinks but I wouldn't use the word devasting!

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